Required information Exercise 5-21 (Algo) Complete the accounting cycle using receivable transactions (LO5-1,5-4, 5- 5,5-7,5-8) [The following information applies to the questions displayed below.) On January 1, 2024, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Cash Debit Credit Accounts Receivable. $25,500 14,400 Allowance for Uncollectible Accounts $1,600 Supplies 3,300 Notes Receivable (6%, due in 2 years) 28,000 Land Accounts Payable 77,800 10,200 Common Stock 104,000 Retained Earnings 33,200 Totals $149,000 $149,000 During January 2024, the following transactions occur: January 2 Provide services to customers for cash, $43,100. January 6 January 15 January 20 January 22 January 25 January 30 Provide services to customers on account, $80,400. Write off accounts receivable as uncollectible, $2,000. (Assume the company uses the allowance method) Pay cash for salaries, $32,200. Receive cash on accounts receivable, $78,000. Pay cash on accounts payable, $6,300. Pay cash for utilities during January, $14,500. Exercise 5-21 (Algo) Part 3 3. Prepare an adjusted trial balance as of January 31, 2024, after updating beginning balances (above) for transactions during January (requirement 1) and adjusting entries at the end of January (requirement 2). 3D FAMILY FIREWORKS Adjusted Trial Balance January 31, 2024 Accounts Debit Credit Exercise 5-21 (Algo) Part 4 4. Prepare an income statement for the period ended January 31, 2024. Revenues: 3D FAMILY FIREWORKS Income Statement For the month ended January 31, 2024 + Total Revenues $ 0 Expenses: Total Expenses Exercise 5-21 (Algo) Part 5 5. Prepare a classified balance sheet as of January 31, 2024. (Amounts to be deducted should be indicated with a minus sign.) 3D FAMILY FIREWORKS Assets Current Assets: Total Current Assets Long-term assets: Balance Sheet January 31, 2024 Liabilities Current Liabilities: Total Current Liabilities Total Liabilities Stockholders' Equity Total Assets Total Stockholders' Equity Total Liabilities & Stockholders' Equity Exercise 5-21 (Algo) Part 6 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < Record the entry to close the revenue accounts. > Note: Enter debits before credits. Date January 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal Exercise 5-21 (Algo) Part 7 7. Analyze how well 3D Family Fireworks manages its receivables: a-1. Calculate the receivables turnover ratio for the month of January. (Hint: For the numerator, use total services provided to customers on account.) (Round your final answer to 1 decimal place.) a-2. If the industry average of the receivables turnover ratios for the month of January is 4.1 times, is the company collecting cash from customers more or less efficiently than other companies in the same industry? b-1. Calculate the ratio of Allowance for Uncollectible Accounts to Accounts Receivable at the end of January. (Round percentage to 1 decimal place.) b-2. Based on a comparison of this ratio to the same ratio at the beginning of January, does the company expect an improvement or worsening in cash collections from customers on credit sales? a-1. The receivables turnover ratio is a-2. The company collecting cash from customers b-1. Allowance for Uncollectible Accounts ratio b-2. The company expects an %